Search Results for: Tenant Fees Act
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Features
Be clear on selling fees
Selling a property to a tenant? Be very clear about the fees,” says Katrine Sporle, The Property Ombudsman.
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Products & Services
Tenants – take cover!
Tenants who do not take out insurance may be penalised for accidental damage to their landlord’s property; they are also taking a gamble with their own belongings and risk losing everything. Marc Da Silva reports.
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Regulation & Law
New protection for tenants and landlords
Letting agents are now required to publish full details of the fees they charge. In addition, agents are also obliged to state whether or not they are a member of a client protection scheme and which redress scheme they are signed up to. The new legislation contained within the Consumer Rights Act 2015 came into force last week and is designed to ensure a fair deal for landlords and tenants, closing off the opportunity for a small minority of rogue agents to impose unreasonable, hidden charges. All letting agents are now required to publish a full tariff of their fees – both on their websites and prominently in their offices. Anyone who does not comply with these new rules will face a major fine. David Cox (left), Managing Director, Association of Residential Letting Agents, said, “Relevant information should be placed prominently in offices where letting agents have face to face contact with clients, as well as on their websites. Any costs to landlords and tenants must be clearly defined and comprehensively outlined, including all fees, charges and penalties that may be charged before, during and after a tenancy.” Meanwhile, more than 3,000 professional lettings agent across the UK have joined…
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Agencies & People
Fees – fair or foul?
Andrea Kirkby asks if landlords and agents should be charging tenant fees.
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Agencies & People
Tenant bargaining power grows
New figures from the National Landlords Association (NLA) show that tenants are securing a larger proportion of private rented homes in the UK at below, rather than above, advertised rents. The data shows that 16 per cent of private rented homes are let to tenants at below advertised rents, with eight per cent of homes being let to tenants at above the asking price. Three quarters (76 per cent) of private rented homes are let to tenants at the advertised rent. The difference means that tenants in the UK are benefitting from a net proportion of 8 per cent – or an estimated 320,000 – homes let at below advertised rents. The NLA’s analysis found that more than a quarter of new tenancies in central London (27 per cent) are agreed at lower than advertised rents, with the North East and outer London close behind (both 22 per cent). However, just nine per cent of properties in the East Midlands are let to tenants below the asking price. Yorkshire and the Humber and the South West are close behind on 11 per cent. At the other end of the scale, more tenancies in outer London are agreed above the advertised…
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Features
Using tenant deposits
Over the years, I have received a number of complaints about agents, often instructed on a tenant find only basis, who have not forwarded the tenant’s deposit to the landlord, as they have advised they will do in their Terms of Business, to allow the deposit to be protected in a tenancy deposit scheme. Instead, the agent has retained the tenant’s deposit and used it to offset the fees due to them from their landlord client, considering this to be perfectly acceptable and no more than a ‘paper exercise’ to ensure payment of their fees. I have always criticised the agent for such action. So concerned have I been by this practice, that the 1st August 2014 version of the TPO Code of Practice for lettings agents has been amended to incorporate an agent’s obligations in this regard. Paragraph 11k of the Code specifically emphasises that deposits belong to the tenant and states that where it is passed to the landlord for protection in a tenancy deposit scheme, any charges due from a landlord for fees etc must be dealt with as a separate issue and not deducted from the funds passed to the landlord. Put simply, the deposit monies…
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Rental market
Tenant Referencing
Hands-on approach Although many agents do outsource their tenant referencing service to a third-party, there are others who prefer to keep the work in-house. “We have so far avoided the temptation to outsource referencing and continue to undertake the task ourselves,” said Mark Sandall of Andrew Granger & Co. “This means we are able to monitor the situation more closely and build up a better relationship with the applicant. We can also see how the applicants conduct themselves through the referencing process to ensure they are suitable.” Charlotte Baker of Belvoir in Melton Mowbray concurred. “We do our referencing in-house as we see it as an opportunity to really assess the tenant. We find it more revealing than a ‘yes or no’ from a referencing company, although we do use Experian for the credit check.” Rent guarantee For many landlords, their biggest fear is not being paid rent. Yet, despite the recovering economy, Shelter is warning that over 215,000 homes in England are at risk of eviction or repossession, equating to 4,140 households under threat every week, mainly because tenants are struggling to pay their rent, reinforcing the need for tenant reference checks. “We also perform our own internet search…
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No ban on letting agent fees…
...but the issue isn't going away, says Sheila Manchester.
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Features
Tenant referencing – a landlord must
With the advent of the 'accidental landlord' and popularity of buy-to-let, checking tenants' backgrounds is a must, says Marc Da Silva.
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Guest Blogs
Lets be transparent about lettings fees
Paul Smith, CEO of haart, says that agents need to be totally transparent about letting fees.
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